Abstract

The environmental Kuznets curve (EKC) expresses the relationship between environmental quality and economic growth. Based on the defects of previous studies on EKC using only environmental pollution indicators, this study holds that environmental quality is the result of pollutants after treatment, absorption, and self-purification, including two dimensions of pollution and absorption. Therefore, the environmental pollution and absorption data of 74 key environmental monitoring cities in China from 2005 to 2017 were selected, and a comprehensive index of environmental quality was constructed using the vertical and horizontal grading method. Then, based on the relevant economic growth indicators of these cities, they were divided into first-tier and new first-tier, second-tier, third-tier, and below. It was found that the EKC of the total sample, the first-tier and new first-tier cities, and the second-tier cities presented an inverted N-shape and had passed the second inflection point, where environmental quality continues to improve with the deepening of economic growth. There was no EKC in the third-tier and below cities. The findings have important implications. China can cross the second inflection point of the EKC and improve environmental quality at a low income level. Therefore, by vigorously developing cleaner production technologies and raising residents’ awareness of environmental protection, it is possible to improve environmental quality at a lower income level than expected, which provides a useful reference for other developing countries.

Highlights

  • Environmental quality is inseparable from economic growth [1]

  • Environmental quality will continue to improve with economic growth

  • Second turning point has been passed, and the environmental quality will continue to improve with economic growth

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Summary

Introduction

Environmental quality is inseparable from economic growth [1]. Due to the exploitation of natural resources and the increase in pollutant emissions, economic growth will lead to the decline of environmental quality [2]; on the other hand, the negative externalities of environmental quality deterioration limit long-term sustainable economic growth [3]. Balancing the relationship between economic growth and environmental quality to maintain high-quality economic growth and stabilize environmental quality has become an important issue in the development path of various countries. China has to take these lessons and search for a “win–win” path for economic growth and environmental quality [5]. Since the 18th CPC National Congress, more attention has been paid to environmental quality, while constructing ecological civilization has been promoted to a national strategy.

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